Working Papers (SMG) Forfattere "Heimeriks, Koen H."

An empirical investigation into the alliance capability development process

Heimeriks, Koen H.; Duysters, Geert(København, 2005)

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Resume:

This study centers around the way in which firms can enhance alliance performance through the development of alliance capabilities. Whereas most research has focused on inter-firm antecedents of alliance performance, research on intra-firm antecedents pointing to prior experience and internal mechanisms to foster knowledge transfer has only recently emerged. As little is known about how firms develop alliance capabilities, this study aims to uncover how differences in sources of alliance capability development explain performance heterogeneity. The data come from a detailed survey held among alliance managers and Vice-Presidents of 151 firms. The survey covers over 2600 alliances for the period 1997-2001. This study not only finds that alliance capabilities partially mediate between alliance experience and alliance performance, but also yields novel insights into the micro-level building blocks underlying the process of alliance capability development.
Key words: alliances, learning, knowledge transfer, alliance experience.
JEL classification: L14

While firms increasingly rely on mergers and acquisitions as a
key growth instrument, many firms have difficulty successfully
integrating the target. To counter the disappointing statistics,
some firms like IBM and Xerox use M&A practices that capture
learnings to improve M&A integrations. Comparing occasional with
master acquirers, we find that those that make effective use of
such M&A practices increase their chances of success with up to
24%. While there are plenty of reasons for M&A integrations to
fail, we derive four key lessons that give master acquirers a
leading edge over their occasional counterparts. The findings are based on survey data by 101 firms engaged in 2,447 integrations over the past decade and one dozen expert interviews. The conclusions are based using case examples of master M&A integration practices from six master acquirers IBM, Xerox, Home Depot, Dow Chemical, GE Capital Finance and SC Johnson.
JEL code: G34

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This paper assesses the differential performance effects of learning mechanisms on the development of alliance capabilities. Prior research has suggested that different capability levels could be identified in which specific intra-firm learning mechanisms are used to enhance a firm’s alliance capability. However, empirical testing in this field is scarce and little is known as to what extent different learning mechanisms are indeed useful in advancing a firm’s alliance capability. This paper analyzes to what extent intra-firm learning mechanisms help firms develop their alliance capability. Differential learning may explain in what way firms yield superior returns from their alliances in comparison to competitors. The empirical results show that different learning mechanisms have different performance effects at different stages of the alliance capability development process. The main lesson from this paper is that firms can steer the creation and speed of their alliance capability development as different learning mechanisms have differential performance effects and are more appropriate at different levels of alliance capability.
Key words: learning mechanisms, alliance capabilities and competitive heterogeneity.
JEL classification: L14

We discuss the microfoundations of routines and capabilities, including why a microfoundations
view is needed and how it may inform work on organizational and competitive heterogeneity.
Building on extant research, we identify three primary categories of micro-level components
underlying routines and capabilities: individuals, social processes, and structure and design. We
discuss how these components, and their interactions, may affect routines and capabilities. In
doing so, we outline a research agenda for advancing the field’s understanding of the
microfoundations of routines and capabilities.